TSX rules amended to prioritize dark orders of certain size
The Ontario Securities Commission recently approved amendments to the TSX's rules to prioritize dark orders of a certain minimum quantity over other dark orders, as long as the dark orders are at the same price. The amendments were first proposed in July, and no comments were received in response to the original proposals. Dark orders were launched on the TSX and TSX-V in March and the amendments are intended to provide an incentive to encourage dark orders of a larger size.
The amendments are part of an ongoing effort to address issues surrounding dark pools and dark orders in Canada. Proposed amendments to the Universal Market Integrity Rules were proposed by IIROC in July to address dark liquidity. Among other things, IIROC's proposals would introduce or amend definitions related to dark liquidity, allow IIROC to designate a minimum size for orders that would not be displayed in a consolidated market display and permit IIROC to designate a minimum size of an "iceberg" order that must be displayed in a consolidated market display. Comments on IIROC's proposed amendments were due by October 27, 2011.
The CSA, meanwhile, has also been studying issues surrounding dark liquidity, as we discussed in our post of August 2.
